The deal, following negotiations with the Communication Workers Union (CWU), means more than 4,000 staff in Crown post offices will receive a pay rise, which is worth 2.25% for 2010-11 and a further 1.4% from 1 April 2011 with an additional £1,000 lump sum payment.

In addition, a one-year extension has been granted on the guarantee that no further post offices will be closed in the next 12 months.

Andy Furey, assistant secretary at the CWU, said: “We are delighted to have secured a two-year pay rise for these hard working staff, but it is a shame that it took a strike ballot to get here.”